SENSATA FOURTH QUARTER AND FULL YEAR 2017 …...YEAR 2017 EARNINGS PRESENTATION FEBRUARY 1, 2018. Q4 AND FULL YEAR 2017 EARNINGS SUMMARY 2 ... poised to accelerate performance in 2018

SENSATA FOURTH QUARTER AND FULL

YEAR 2017 EARNINGS PRESENTATION

FEBRUARY 1, 2018

2Q4 AND FULL YEAR 2017 EARNINGS SUMMARY

Forward-Looking Statements

This earnings presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of

1933 and Section 21E of the Securities Exchange Act of 1934. Sensata believes that its expectations are based on

reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A

number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations

expressed in this earnings release, including, without limitation, risks associated with regulatory, legal, governmental, political,

economic and military matters; adverse conditions in the automotive industry; competition in our industry, including pressure

from customers to reduce prices; supplier interruption limiting access to manufactured components or raw materials; business

disruptions due to natural disasters; labor disruptions; difficulties or failures to integrate businesses we acquire; market

acceptance of new products; and our level of indebtedness. Readers are cautioned not to place undue reliance on these

forward-looking statements, which speak to results only as of the date the statements were made; and we undertake no

obligation to publicly update or revise any forward-looking statements, whether to reflect any future events or circumstances

or otherwise. See "Risk Factors" in the Company's 2017 Annual Report on Form 10-K and other public filings and press

releases. Copies of our filings are available from our Investor Relations department or from the SEC website, www.sec.gov.


FY-2017 GAAP Results

FY-2017 FY-2016 Δ

Revenue $3,306.7M $3,202.3M 3.3%

Gross Profit(% of revenue)

$1,165.4M35.2%

$1,118.0M34.9%

4.2%

R&D(% of revenue)

$130.2M3.9%

$126.7M4.0%

2.8%

SG&A(% of revenue)

$302.8M9.2%

$293.6M9.2%

3.1%

Profit from Operations(% of revenue)

$552.4M16.7%

$492.2M15.4%

12.2%

Tax Rate (1.5%) 18.4% NM

Net Income(% of revenue)

$408.4M12.3%

$262.4M8.2%

55.6%

Diluted EPS $2.37 $1.53 54.9%

Diluted Shares Outstanding 172.2M 171.5M 0.7M


FY-2017: Solid revenue growth, margin expansion & double-

digit adjusted EPS growth

Accelerating organic revenue growth– overall organic revenue growth

of 4% up significantly y/y; organic revenue growth of 14% in HVOR;

strength in industrial businesses and China

Robust EBIT margin expansion – adjusted EBIT margin expands by 100

basis points y/y

Double-digit adjusted EPS growth – adjusted EPS growth of 10% y/y

driven by M&A cost synergies and net productivity gains

Increasing flexibility for value-creating capital deployment – re-

domiciling would provide more optionality to maintain balanced, returns-

driven approach if approved by shareholders

Strong year of new design wins sets foundation for future growth


Auto – Organic revenue growth: 1.9%

• China sustains strong performance despite a year of slower

production growth

• North America and Europe perform in-line with expectations,

poised to accelerate performance in 2018

• Strong year of new design wins lays foundation for future

growth

FY-17 Performance by End Market

Industrial, HVAC & Other – Organic rev growth: 4.1%

• Continued tailwinds from China and HVAC market

• Need for more efficient products driving higher demand for

pressure sensors

• FY-2017 organic revenue growth of 4% represents acceleration from

performance in previous two years

HVOR – Organic revenue growth: 13.5%

• Strong performance in all market segments

• High single digit content growth driven by increasing use of

sensors and operator sensing technologies

• Expect FY-18 to be another year of strong organic revenue

growth due to market growth and sustained content gains

~14%

PERCENT OF REVENUES

~26%

~60%


Update on proposed re-domicile to the UK

• Filed definitive proxy statement on January 19th

• Shareholder meeting scheduled for February 16th

• Process of soliciting votes for shareholder approval of

the transaction has begun

• Expect the UK High Court to approve the merger by

the end of Q1-2018


Delivering solid results, poised to sustain strong performance

Intersecting attractive secular growth opportunities,

including long-term megatrends such as electrification,

autonomy, and smart/connected products

Sustaining robust margin expansion

• FY-17 adjusted EBIT margins expanded 100 bps

Delivering double-digit adjusted EPS growth

• FY-17 adjusted EPS growth of 10%

Accelerating free cash flow generation provides

significant optionality for value-creating capital

deployment initiatives

Poised to extend leadership position and deliver

strong financial performance in 2018 and over the next

three years and beyond


Q4-2017 Q4-2016 Δ

Revenue $840.5M $788.4M 6.6%

Adjusted EBIT% revenue

$200.6M23.9%

$179.6M22.8%

11.7%

Adjusted Net Income% revenue

$149.4M17.8%

$131.0M16.6%

14.1%

Adjusted EPS $0.87 $0.76 14.5%

Q4-2017 Financial SummaryADJUSTED NET INCOME GROWS 9% ORGANICALLY

• Revenue growth of 6.6%

composed of:

• Organic revenue growth: 5.2%

• Foreign exchange increases

revenue by 1.4%

• Adjusted EBIT grows 7.8%

organically due to higher

profitability from acquired

businesses

• ANI grows 8.7% organically on

5.2% organic revenue growth

Q4-2016 Organic FX Q4-2017

$0.76$0.87

$0.07 $0.04


SEGMENT PROFITREVENUE

% SEGMENT MARGIN (EXCLUDING FX)

Foreign exchange 1.7% positive impact

• HVOR continues to post strong growth, North

America On-Road and Construction markets

remain strong

• China auto continues to drive overall

automotive growth and delivers another strong

year of performance

• Profit margins expand 110 bps y/y excluding

FX due primarily to higher M&A cost synergies

and net productivity gains*% of revenue, excludes FX

$588.0M

$634.7M

Q4-2016 Q4-2017

$162.0M

Q4-2016 Q4-2017

Q4-17 REVENUE GROWTH REPORTED ORGANIC

Automotive 5.1% 3.4%

HVOR 22.3% 20.5%

Performance Sensing 7.9% 6.2%

27.5%

28.6%*

Q4-2017: Performance Sensing

$180.7M


$63.2M$67.5M

Q4-2016 Q4-2017

$200.4M

$205.8M

Q4-2016 Q4-2017

Q4-2017: Sensing Solutions

SEGMENT PROFITREVENUE

% SEGMENT MARGIN (EXCLUDING FX)

31.5%32.7%*

Foreign exchange 0.4% impact

• Continued momentum in HVAC, Appliance

and Industrial markets

• FY-17 organic revenue growth: 4.1%

• Industrial end markets benefitting from

strength in Asia

• Margin improvement driven by M&A cost

synergies and operating leverage

*% of revenue, excludes FX

Q4-17 REVENUE GROWTH REPORTED ORGANIC

Sensing Solutions 2.7% 2.3%


Q4-2017 Non-GAAP ResultsQ4-2017 Q4-2016 Δ

Revenue $840.5M $788.4M 6.6%

Adj. Gross Profit(% of revenue)

$304.9M36.3%

$285.7M36.2%

6.7%

R&D(% of revenue)

$33.2M3.9%

$31.4M4.0%

5.6%

Adj. SG&A(% of revenue)

$71.7M8.5%

$68.7M8.7%

4.4%

Adj. Other Opex1 $2.6M $1.4M 88.0%

Adj. Other, net $3.2M ($4.6M) 168.3%

Adj. EBIT(% of revenue)

$200.6M23.9%

$179.6M22.8%

11.7%

Adj. Tax Rate2 6.8% 5.4% 140 bps

Adj. Net Income(% of revenue)

$149.4M17.8%

$131.0M16.6%

14.1%

Adj. EPS $0.87 $0.76 14.5%

1 – Represents sum of adjusted amortization of intangible assets and adjusted restructuring and special charges

2 – Represents adjusted taxes divided by adjusted EBIT


Delivered on targeted net leverage ratio

NET LEVERAGE RATIONET DEBT ($M)

LEVERAGE RATIO LOWERED BY 1.6X~$758M OF NET DEBT REDUCTION SINCE Q4-15

4.6x

Q4-15 Q4-17

$3,317

2000

2200

2400

2600

2800

3000

3200

3400

Q4-15 Q4-17

3.0x

$2,559


• Target mid-to-high teens unlevered IRR

• Near-term bias for bolt-on acquisitions

• Proven track record of value creation by Sensata

management

• Greater flexibility to repurchase shares when

re-domicile transaction is complete

• Amount of buyback could vary based on business,

market or economic conditions

Critical to maintain a

strong balance sheetwhile deploying capital to highest-return initiatives

(situational approach)

We will maintain a balanced, returns-driven approach to

deploying capital

Capital Deploymentfueled by strong, growing free cash flow

M&A Share Repurchase

Expect highest returns Economic driven decision


Q1-18 Financial Guidance

Q1-17 Q1-18 GUIDANCE REPORTED ORGANIC

Revenue $807.3M $849M - $873M 5% - 8% 3% – 5%

Adj. EBIT $170.7M $191M - $197M 12% - 15% 8% - 11%

Adj. Net Income $121.5M $141M - $147M 16% - 21% 11% - 15%

Adj. EPS $0.71 $0.81 – $0.85 14% - 20% 10% - 14%

COMMENTS

• FX expected to

increase revenue by

2-3%

– Adjusted EPS: positive

impact of $0.03 - $0.04

from FX

• Assumes 140 bps

increase y/y in

adjusted EBIT margins

• Integration expense of

~$1M

• Diluted share count of

172.8M

• Strong fill rate of 89%


2018 Financial Guidance

FY-2017 FY-2018 GUIDANCE REPORTED ORGANIC

Revenue $3,307M $3,442M – $3,542M 4%– 7% 3% – 5%

Adj. EBIT $750M $818M – $846M 9% – 13% 7% – 10%

Adj. Net Income $549M $617M – $645M 12% – 18% 9% – 13%

Adj. EPS $3.19 $3.57 – $3.73 12% – 17% 9% – 13%

ASSUMPTIONS

• FX expected to

increase revenue by

1-2%

– Adjusted EPS: positive

impact from FX of

$0.10 - $0.14

• Cash tax rate: ~7.0%

• Diluted share count of

172.8M shares

• Assumes no M&A

• Free cash flow of

$519M - $547M


Sensata continuously creates value for shareholders

• We are a leader in the Sensing

Market with differentiated solutions

• We have demonstrated an ability to

adapt and leverage our technologies

and capabilities for new applications

and market positions as megatrends

shape our industry

• Our accelerating free cash flow

generation and financial performance

provides significant optionality for

further value creation

APPENDIXSENSATA FOURTH QUARTER 2017 EARNINGS SUMMARY


Q4-2017 GAAP Results

Q4-2017 Q4-2016 Δ

Revenue $840.5M $788.4M 6.6%

Gross Profit(% of revenue)

$300.4M35.7%

$278.9M35.4%

7.7%

R&D(% of revenue)

$33.2M3.9%

$31.4M4.0%

5.6%

SG&A(% of revenue)

$75.6M9.0%

$69.0M8.7%

9.6%

Profit from Operations(% of revenue)

$152.0M18.1%

$127.7M16.2%

19.1%

Tax Rate (46.5%) 13.9% NM

Net Income(% of revenue)

$169.1M20.1%

$66.5M8.4%

154.2%

Diluted EPS $0.98 $0.39 151.3%

Diluted Shares Outstanding 172.6M 171.8M 0.8M


1 – Represents sum of adjusted amortization of intangible assets and adjusted restructuring and special charges

2 – Represents adjusted taxes divided by adjusted EBIT

FY-2017 Non-GAAP Results

FY-2017 FY-2016 Δ

Revenue $3,306.7M $3,202.3M 3.3%

Adj. Gross Profit(% of revenue)

$1,185.6M35.9%

$1,137.7M35.5%

4.2%

R&D(% of revenue)

$130.2M3.9%

$126.7M4.0%

2.8%

Adj. SG&A(% of revenue)

$291.6M8.8%

$289.4M9.0%

0.7%

Adj. Other Opex1 $18.5M $6.9M 166.7%

Adj. Other Gains/(Losses), net $5.1M ($19.4M) 126.4%

Adj. EBIT(% of revenue)

$750.5M22.7%

$695.3M21.7%

7.9%

Adj. Tax Rate2 6.6% 6.0% 60 bps

Adj. Net Income(% of revenue)

$548.7M16.6%

$494.8M15.5%

10.9%

Adj. EPS $3.19 $2.89 10.4%


Q4-2017 Cash Flow Statement

Q4-2017 Q4-2016 Δ

Net Income $169.1M $66.5M 154.2%

Depreciation & Amortization $66.8M $79.2M (15.7%)

Changes in Working Capital $12.8M ($27.7M) 146.4%

Other ($63.4M) $7.2M (985.8%)

Operating Cash Flow $185.4M $125.2M 48.1%

Capital Expenditures ($41.0M) ($35.6M) (15.2%)

Free Cash Flow $144.3M $89.5M 61.2%

Changes recalculated based on unrounded numbers. Certain amounts will not sum due to rounding.


FY-2017 Cash Flow Statement

FY-2017 FY-2016 Δ

Net Income $408.4M $262.4M 55.6%

Depreciation & Amortization $270.4M $308.4M (12.3%)

Changes in Working Capital ($94.8M) ($93.9M) (1.0%)

Other ($26.2M) $44.6M (158.8%)

Operating Cash Flow $557.6M $521.5M 6.9%

Capital Expenditures ($144.6M) ($130.2M) (11.0%)

Free Cash Flow $413.1M $391.3M 5.6%


DEC 31, 2017 DEC 31, 2016

Total Assets $6,641.5M $6,241.0M

Working Capital $1,218.8M $758.2M

Intangibles, Net & Other

Long-Term Assets$4,793.2M $4,899.5M

DEC 31, 2017 DEC 31, 2016

Cash & Equivalents $753.1M $351.4M

Current Debt $15.7M $14.6M

Net Cash $737.4M $336.8M

Balance Sheet


Sensata Peer Group

ST Peer Group Sector

1. Ametek Inc Industrial

2. Amphenol Corp Tech

3. Aptiv Auto

4. Delphi Technologies Auto

5. Fortive Industrial Tech

6. FLIR Systems Tech

7. Gentex Auto

8. Littelfuse Industrial

9. Rockwell Industrial

10. Roper Industrial

11. TE Connectivity Industrial Tech

12. Wabco Industrial

NON-GAAP FINANCIAL MEASURES


Non-GAAP MeasuresWe supplement the reporting of our financial information determined in accordance with U.S. generally accepted accounting principles (“GAAP”) with certain non-GAAP financial measures. We use these non-GAAP financial

measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of our overall business performance, and as a factor in determining compensation for certain

employees. We believe presenting non-GAAP financial measures may be useful for period-over-period comparisons of underlying business trends and our ongoing business performance. We also believe presenting these non-

GAAP measures provides additional transparency into how management evaluates our business.

Non-GAAP financial measures should be considered as supplemental in nature and are not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with U.S. GAAP. In

addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

Within this presentation we refer to the below measures which are not determined in accordance with U.S. GAAP (i.e., non-GAAP measures). Reconciliations of each non-GAAP measure to the most directly comparable U.S. GAAP

financial measure are included within Appendix B.

Adjusted EBIT – represents net income, determined in accordance with U.S. GAAP, excluding interest expense, net, provision for/(benefit from) income taxes, and certain non-GAAP adjustments including: (1) restructuring and

special charges, (2) financing and other transaction costs, (3) deferred losses/(gains) on other hedges, and (4) depreciation and amortization expense related to the step-up in fair value of fixed and intangible assets and inventory.

We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Adjusted EBIT margin – represents adjusted EBIT divided by net revenue. We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Adjusted EBITDA – represents net income, determined in accordance with U.S. GAAP, excluding interest expense, net, provision for/(benefit from) income taxes, depreciation expense, amortization of intangible assets, and certain

non-GAAP adjustments including: (1) restructuring and special charges, (2) financing and other transaction costs, (3) deferred losses/(gains) on other hedges, and (4) amortization expense related to the step-up in fair value of

inventory.

Adjusted EPS– represents ANI divided by the number of diluted weighted-average ordinary shares outstanding during the period. We believe that this measure is useful to investors and management in understanding our ongoing

operations and in analysis of ongoing operating trends.

Adjusted net income (“ANI”) – represents net income, determined in accordance with U.S. GAAP, excluding certain non-GAAP adjustments including: (1) restructuring and special charges, (2) financing and other transaction costs,

(3) deferred losses/(gains) on other hedges, (4) depreciation and amortization expense related to the step-up in fair value of fixed and intangible assets and inventory, (4) deferred income tax and other tax expense/(benefit), and (5)

amortization of deferred financing costs and debt discounts. We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

ANI margin – represents ANI divided by net revenue. We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Adjusted taxes – represents provision for/(benefit from) income taxes, determined in accordance with U.S. GAAP, excluding certain non-GAAP adjustments recorded to provision for/(benefit from) income taxes in our U.S. GAAP

financial statements, such as deferred income tax and other tax expense/(benefit). We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating

trends.

Adjusted tax rate – represents adjusted taxes divided by adjusted EBIT. We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Free cash flow – represents net cash provided by/(used in) operating activities less additions to property, plant and equipment and capitalized software. We believe free cash flow is useful to management and investors as a

measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to, among other things, fund acquisitions, repurchase ordinary shares, and (or) accelerate the repayment of

debt obligations.

Net debt – represents total debt, capital lease and other financing obligations less cash and cash equivalents. We believe net debt is a useful measure to management and investors in understanding trends in our overall financial

condition.

Net leverage ratio – represents net debt divided by last twelve months (LTM) adjusted EBITDA. We believe net leverage ratio is a useful measure to management and investors in understanding trends in our overall financial

condition.

Organic growth (or decline) – in discussing trends in the Company’s performance, we refer to the percentage change of certain GAAP or non-GAAP financial measures in one period versus another, calculated on either a reported

or organic basis. Changes calculated on an organic basis exclude the period-over-period impact of foreign exchange rate differences as well as the impact of acquisitions, net of exited businesses for the first 12 months following the

transaction date. We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Segment margin (reported and constant currency basis) – on a reported basis, segment margin represents segment profit, as determined in accordance with U.S. GAAP, divided by segment net revenue. Segment margin on a

constant currency basis represents segment profit, measured on a constant currency basis with a comparison (e.g., prior year) period, divided by segment net revenue, also measured on a constant currency basis with the

comparison period. We believe that these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.


Adjusted EBIT – Q4-2017Percentage amounts have been calculated based on unrounded numbers. Accordingly, certain amounts may not sum due to the effect of rounding.

$ in thousands Q4-2017 Q4-2016 Change

Total Sensata Amount Margin1 Amount Margin1 Amount Margin1

Net income $169,129 20.1% $66,527 8.4% 154.2% 1,170 bps

Interest expense, net 39,183 4.7% 40,617 5.2% (3.5%) (50 bps)

(Benefit from)/provision for income taxes (53,675) (6.4%) 10,714 1.4% (601.0%) (780 bps)

Earnings before interest and taxes ("EBIT") 154,637 18.4% 117,858 14.9% 31.2% 350 bps

Non-GAAP adjustments:

Restructuring and special charges 3,032 0.4% 3,985 0.5% (23.9%) (10 bps)

Financing and other transaction costs 4,729 0.6% - 0.0% 100.0% 60 bps

Deferred (gain)/loss on other hedges (2,124) (0.3%) 5,150 0.7% (141.2%) (100 bps)

Depreciation and amortization expense related to the step-up in fair value of fixed and intangible

assets and inventory.40,294 4.8% 52,559 6.7% (23.3%) (190 bps)

Total adjustments 45,931 5.5% 61,694 7.8% (25.6%) (230 bps)

Adjusted EBIT $200,568 23.9% $179,552 22.8% 11.7% 110 bps

1 - Percentage of net revenue

Less year-over-year change due to:

Foreign exchange rate differences 3.9% 60 bps

Organic growth 7.8% 50 bps


Adjusted EBIT – FY-17Percentage amounts have been calculated based on unrounded numbers. Accordingly, certain amounts may not sum due to the effect of rounding.

$ in thousands FY-2017 FY-2016 Change

Total Sensata Amount Margin1 Amount Margin1 Amount Margin1

Net income $408,357 12.3% $262,434 8.2% 55.6% 410 bps

Interest expense, net 159,761 4.8% 165,818 5.2% (3.7%) (40 bps)

(Benefit from)/provision for income taxes (5,916) (0.2%) 59,011 1.8% (110.0%) (200 bps)

Earnings before interest and taxes ("EBIT") 562,202 17.0% 487,263 15.2% 15.4% 180 bps


Restructuring and special charges 21,331 0.6% 14,982 0.5% 42.4% 10 bps

Financing and other transaction costs 9,267 0.3% 1,508 0.0% 514.5% 30 bps

Deferred gain on other hedges (7,365) (0.2%) (19,347) (0.6%) 61.9% 40 bps

Depreciation and amortization expense related to the step-up in fair value of fixed and intangible

assets and inventory.165,040 5.0% 210,847 6.6% (21.7%) (160 bps)

Total adjustments 188,273 5.7% 207,990 6.5% (9.5%) (80 bps)

Adjusted EBIT $750,475 22.7% $695,253 21.7% 7.9% 100 bps

1 - Percentage of net revenue


Foreign exchange rate differences 0.0% 20 bps

Organic growth 7.9% 80 bps


Adjusted EBITDA

$ in thousands Period

Total Sensata LTM FY-2017 Q4-2017 Q3-2017 Q2-2017 Q1-2017 Q4-2016

Net income$408,357 $408,357 $169,129 $88,035 $79,457 $71,736 $66,527

Interest expense, net 159,761 159,761 39,183 40,263 40,038 40,277 40,617

(Benefit from)/provision for income taxes (5,916) (5,916) (53,675) 14,816 18,611 14,332 10,714

Depreciation expense 109,321 109,321 27,307 27,212 26,007 28,795 29,254

Amortization of intangible assets 161,050 161,050 39,472 40,317 41,003 40,258 49,926

Earnings before interest, taxes, depreciation, and amortization ("EBITDA") $832,573 $832,573 $221,416 $210,643 $205,116 $195,398 $197,038


Restructuring and special charges 19,151 19,151 3,032 2,684 7,185 6,250 2,185

Financing and other transaction costs 9,267 9,267 4,729 4,538 - - -

Deferred (gain)/loss on other hedges (7,365) (7,365) (2,124) (2,503) 2,602 (5,340) 5,150

Adjusted EBITDA $853,626 $853,626 $227,053 $215,362 $214,903 $196,308 $204,373


ANI, Adjusted EPS, and ANI Margin – Q4-2017Per share and percentage amounts have been calculated based on unrounded numbers. Accordingly, certain amounts may not sum due to the effect of rounding.

$ in thousands Q4-2017 Q4-2016 Change

Total Sensata Amount EPS1 Margin2 Amount EPS1 Margin2 Amount EPS1 Margin2

Net income $169,129 $0.98 20.1% $66,527 $0.39 8.4% 154.2% 151.3% 1,170 bps


Restructuring and special charges 3,032 0.02 0.4% 3,985 0.02 0.5% (23.9%) 0.0% (10 bps)

Financing and other transaction costs 4,729 0.03 0.6% - - 0.0% 100.0% 100.0% 60 bps

Deferred (gain)/loss on other hedges (2,124) (0.01) (0.3%) 5,150 0.03 0.7% (141.2%) (133.3%) (100 bps)

Depreciation and amortization expense related to the step-up in fair value of

fixed and intangible assets and inventory.40,294 0.23 4.8% 52,559 0.31 6.7% (23.3%) (25.8%) (190 bps)

Deferred income tax and other tax (benefit)/expense (67,343) (0.39) (8.0%) 936 0.01 0.1% (7294.8%) (4000.0%) (810 bps)

Amortization of deferred financing costs and debt discounts 1,713 0.01 0.2% 1,833 0.01 0.2% (6.5%) 0.0% 0 bps

Total adjustments (19,699) (0.11) (2.3%) 64,463 0.38 8.2% (130.6%) (128.9%) (1,050 bps)

Adjusted net income ("ANI") $149,430 $0.87 17.8% $130,990 $0.76 16.6% 14.1% 14.5% 120 bps

1 - Per diluted weighted-average ordinary shares outstanding

2 - Percentage of net revenue Less year-over-year change due to:

Foreign exchange rate differences 5.4% 5.3% 60 bps

Organic growth 8.7% 9.2% 60 bps


ANI, Adjusted EPS, and ANI Margin – FY-17Per share and percentage amounts have been calculated based on unrounded numbers. Accordingly, certain amounts may not sum due to the effect of rounding.

$ in thousands FY-2017 FY-2016 Change

Total Sensata Amount EPS1 Margin2 Amount EPS1 Margin2 Amount EPS1 Margin2

Net income $408,357 $2.37 12.3% $262,434 $1.53 8.2% 55.6% 54.9% 410 bps


Restructuring and special charges 21,331 0.12 0.6% 14,982 0.09 0.5% 42.4% 33.3% 10 bps

Financing and other transaction costs 9,267 0.05 0.3% 1,508 0.01 0.0% 514.5% 400.0% 30 bps

Deferred gain on other hedges (7,365) (0.04) (0.2%) (19,347) (0.11) (0.6%) 61.9% 63.6% 40 bps

Depreciation and amortization expense related to the step-up in fair value

of fixed and intangible assets and inventory.165,040 0.96 5.0% 210,847 1.23 6.6% (21.7%) (22.0%) (160 bps)

Deferred income tax and other tax (benefit)/expense (55,156) (0.32) (1.7%) 17,086 0.10 0.5% (422.8%) (420.0%) (220 bps)

Amortization of deferred financing costs and debt discounts 7,241 0.04 0.2% 7,334 0.04 0.2% (1.3%) 0.0% 0 bps

Total adjustments 140,358 0.82 4.2% 232,410 1.36 7.3% (39.6%) (39.7%) (310 bps)

Adjusted net income ("ANI") $548,715 $3.19 16.6% $494,844 $2.89 15.5% 10.9% 10.4% 110 bps

1 - Per diluted weighted-average ordinary shares outstanding

2 - Percentage of net revenue Less year-over-year change due to:

Foreign exchange rate differences 0.1% 0.0% 10 bps

Organic growth 10.8% 10.4% 100 bps


Adjusted Taxes and Adjusted Tax Rate

$ in thousands Q4 FY

Total Sensata 2017 2016 2017 2016

(Benefit from)/provision for income taxes ($53,675) $10,714 ($5,916) $59,011


Deferred income tax and other tax (benefit)/expense (67,343) 936 (55,156) 17,086

Adjusted taxes $13,668 $9,778 $49,240 $41,925

Adjusted EBIT $200,568 $179,552 $750,475 $695,253

Adjusted tax rate 6.8% 5.4% 6.6% 6.0%


Free Cash Flow


Total Sensata 2017 2016 Change 2017 2016 Change

Net cash provided by operating activities $185,367 $125,174 48.1% $557,646 $521,525 6.9%

Additions to property, plant and equipment and capitalized software (41,048) (35,633) (15.2%) (144,584) (130,217) (11.0%)

Free cash flow $144,319 $89,541 61.2% $413,062 $391,308 5.6%


Net Debt and Net Leverage Ratio

$ in thousands As of

Total Sensata 31-Dec-17 30-Sep-17 30-Jun-17 31-Mar-17 31-Dec-16

Current portion of long-term debt, capital lease and other financing obligations $15,720 $13,176 $10,704 $7,363 $14,643

Capital lease and other financing obligations 28,739 29,990 30,929 31,260 32,369

Long-term debt 3,225,810 3,224,684 3,225,325 3,225,965 3,226,582

Total debt, capital lease and other financing obligations $3,270,269 $3,267,850 $3,266,958 $3,264,588 $3,273,594

Less: Discount (14,424) (15,812) (16,426) (17,041) (17,655)

Less: Deferred financing costs (27,758) (29,971) (31,192) (32,413) (33,656)

Total gross indebtedness 3,312,451 3,313,633 3,314,576 3,314,042 3,324,905

Less: Cash and cash equivalents 753,089 612,972 511,484 431,700 351,428

Net debt $2,559,362 $2,700,661 $2,803,092 $2,882,342 $2,973,477

Adjusted EBITDA (LTM) $853,626 $830,946 $815,881 $800,277 $791,680

Net leverage ratio 3.0 3.3 3.4 3.6 3.8


Organic Revenue Growth

2017 versus 2016

Total Sensata Q4 FY

Reported net revenue (percentage) change 6.6% 3.3%


Foreign exchange rate differences 1.4% (0.7%)

Organic revenue growth 5.2% 4.0%

Performance Sensing Q4 FY





Sensing Solutions Q4 FY






Segment Margin


Performance Sensing 2017 2016 Change 2017 2016 Change

Segment profit $180,695 $161,986 11.5% $664,186 $615,526 7.9%

Segment net revenue 634,696 587,985 7.9% 2,460,600 2,385,380 3.2%

Segment margin (reported basis) 28.5% 27.5% 100 bps 27.0% 25.8% 120 bps


Foreign exchange rate differences (0.1%) 0.0% (10 bps) (0.2%) 0.0% (20 bps)

Segment margin (constant currency basis) 28.6% 27.5% 110 bps 27.2% 25.8% 140 bps

Sensing Solutions 2017 2016 Change 2017 2016 Change

Segment profit $67,539 $63,177 6.9% $277,450 $261,914 5.9%

Segment net revenue 205,838 200,411 2.7% 846,133 816,908 3.6%

Segment margin (reported basis) 32.8% 31.5% 130 bps 32.8% 32.1% 70 bps


Foreign exchange rate differences 0.1% 0.0% 10 bps 0.1% 0.0% 10 bps

Segment margin (constant currency basis) 32.7% 31.5% 120 bps 32.7% 32.1% 60 bps

Documents

SENSATA FOURTH QUARTER AND FULL YEAR 2017 …...YEAR 2017 EARNINGS PRESENTATION FEBRUARY 1, 2018. Q4 AND FULL YEAR 2017 EARNINGS SUMMARY 2 ... poised to accelerate performance in 2018